DEPRECIATION GUIDELINES
Assets (excluding qualified technological equipment) may not be depreciated in excess of 75% of the original cost.
Qualified technological equipment may not be depreciated in excess of 90% of the original cost.
Each category includes, but is not limited to, the items listed below.
Category A: 10% depreciation per year ( 10 year life )
(1) Air conditioning equipment (compressors, ducts, package
units and window units)
(2) Asphalt, cement and slurry plants and equipment
(3) Automobile repair shop and gasoline service station equip-
ment
(4) Automobile sales agency furniture, fixtures and equipment
(5) Bakery equipment
(6) Banking furniture, fixtures and equipment (automatic teller
machines)
(7) Barber shop, beauty salon and cosmetic salon furniture, fix-
tures and equipment
(8) Bottling equipment
(9) Bowling alley equipment
(10) Burglar alarm, security alarm and monitoring systems
(11) Catering equipment
(12) Clay products manufacturing equipment
(13) Cold storage, ice making and refrigeration equipment
(14) Conveyors
(15) Dentists and physicians office furniture and equipment
(16) Department store furniture, fixtures and equipment
(17) Drug store furniture, fixtures and equipment
(18) Emergency power generators
(19) Fire extinguishing systems
(20) Garbage disposals, trash compactors and trash containers
(21) Hotel and motel furniture, fixtures and equipment (restaurant,
bar, meeting rooms, office rooms, lobby and other public
rooms)
(22) Intercom systems
(23) Kitchen equipment
(24) Laundry and dry cleaning equipment
(25) Libraries
(26) Mail chutes and mail boxes
(27) Musical instruments (portable)
(28) Office furniture, fixtures and equipment (any kind whether
modular or system furniture, desks, chairs, cabinets, shelving,
awnings, typewriters, calculators, adding machines, files, parti-
tions, carrels, cash registers, paper cutters, etc.)
(29) Paper products industry machinery and equipment
(30) Printing industry machinery and equipment
(31) Pulp industry machinery and equipment
(32) Restaurant, carry out, supermarket and delicatessen furniture,
fixtures and equipment
(33) Shoe repairing furniture, fixtures and equipment
(34) Signs (neon and others)
(35) Solar panels
(36) Special tools (dies, jigs, gauges, molds)
(37) Surveying and drafting equipment
(38) Theater furniture and equipment
(39) X-ray and diagnostic equipment
(40) Wax museum (wax figures, displays, sets, barriers, rails)
Category B: 6.67% depreciation per year ( 15 year life )
(1) Antennas, transmitting towers, fiber optic cables, shelters,
satellite dishes and repeaters
(2) Cement gravel and sand bins
(3) Pianos and organs
(4) Plating equipment
(5) Safes
(6) Watercraft, docks, slips, wharves, piers and floating equipment
(boats, ships, barges)
Category C: 12.5% depreciation per year ( 8 year life )
(1) Building and lawn maintenance equipment
(2) Car wash equipment
(3) Construction, road paving and road maintenance equipment
(4) Fabricated metal products machinery and equipment (ma-
chine shop)
(5) Hospital and nursing home furniture, fixtures and equipment
(6) Junk yard machinery and equipment
(7) Meat, fruit, and vegetable packing equipment
(8) Meters, tickometers and automatic mailer equipment
(9) Music boxes
(10) Non-registered motor vehicles (forklifts and golf carts)
(11) Pipe contractor machinery and equipment
(12) Radio, television, telecommunications, microwave and satel-
lite transmitting systems (multiplexers, switches, transmitters,
receivers, telephones, fiber optic equipment, terminal equip-
ment)
(13) Recreation, health fitness, health club, golf course and sport-
ing equipment
(14) Special equipment mounted on any motor vehicle (welders,
compressors)
(15) Trailers
(16) Vending machines (cigarettes, slot, change, soft drink, food)
Category D: 20% depreciation per year ( 5 year life )
(1) Blinds, drapes and shades (used as secondary window cov-
ering)
(2) Brain scanners, CAT scanners, MRI scanners and dialysis
equipment
(3) Canvas
(4) Carpets over finished floor, loose carpet and rugs
(5) Coffee makers and soda fountain equipment
(6) Computers and related peripheral equipment (excluding
qualified technological equipment)
(7) Duplicating machines, photocopiers and photographic equip-
ment
(8) Hot air balloons
(9) Outdoor Christmas decorations
(10) Portable toilets
(11) Self-service laundries (washers, dryers)
(12) Swimming pool furniture, fixtures and equipment
(13) Telephone answering equipment (beepers)
(14) Television, stereo, radio and recorder equipment
(15) Test equipment and electronic manufacturing equipment
(16) Wood pallets (used in warehouses)
Category E: 30% depreciation per year
(1) Qualified technological equipment
Category F: 50% depreciation per year ( 2 year life )
(1) Amusement arcade machines, pinball machines and video
games
(2) Cable T.V. decoders
(3) China, glassware, pots, pans, serving dishes, utensils and
silverware (in service)
(4) Linens (in service)
(5) Microfilms, movie films and video movie tapes
(6) Small hand tools
(7) Tuxedos and uniforms (in service)
Category G: No depreciation — report at 100% of cost
(1) Antiques, tapestries and oriental rugs (items appreciating in
value)
(2) Chemicals
(3) Cleaning, office and other supplies
(4) China, glassware, pots, pans, serving dishes, utensils and
silverware (new in reserve)
(5) Linens (new in reserve)
(6) Oil paintings and sculptures (items appreciating in value)
(7) Paper products
(8) Tuxedos and uniforms (new in reserve)